Levis

Levi’s Strauss was the market leader for women’s jeans in 1995. However its position as leader was coming under heavy attack. Focusing on size combination (which they offer 51), Levi’s was losing ground as more styles, more colors, and better fit became more important to its customers. Market research showed that only 24% of women were completely satisfied with their jeans purchase, at $50 a pair they were becoming a tough sell. Levi’s responded by recognizing a need to be in closer touch with their customers. They began to open stores to sell directly to their customers (rather then trough another retailer). They also implemented new technology such as EDI to help their supply chain. Unfortunately the lag time for their products was still 8 months.
Levi’s was a company that needed a way to strengthen their business. Using the value chain analysis Levi’s was a prime textbook case of a company that needed to improve its value chain in order to sustain a competitive advantage. The results of their value chain analysis are as follows:
1. Value: only 24% satisfaction rate.
2. Value stream: ROE average more then 38% lead to little improvement in their cumbersome value chain.
3. Continuous flow: 8 month lag time.
4. Pull: The customer initiated nothing, activity was driven by sales forecasts.
5. Perfection: A good ROE led management to miss opportunities in improvement.
In addition, use a pull driven distribution strategy Levi’s lost big profits when retailers had to markdown their products in order to make them more appealing. Levi’s often made good on these markdowns to their retailers. Although the opening of Original Levi’s stores helped eliminate some of these losses, it was clear Levi’s need a “better fit” with their customer.
In 1994 they were approached by Custom Clothing Technology Corp. (CCTC) with a business proposal. Specializing in…...

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...Levi Strauss & Co. is a flourishing business. Since the early days, it has been a leader in the garment industry. The original and most famous Levi Strauss product is blue jeans. Jeans have become desirable and even fashionable clothing for not only miners, farmers, and cowboys, but also for movie stars, executives, women, children, and teenagers from all over the world. Throughout its history, however, the company has researched and developed a number of other products. The company now markets a wide range of clothing and accessories, all under the brand name Levi’s. Many new Levi products have been launched over the years. Some of these have succeeded beautifully, but others have flopped completely. The company is still best known, however, as the maker of Levi jeans, the pants that are guaranteed to shrink1, wrinkle, and fade2.
In 1954, flushed with the success of the cotton twill pants it had introduced a few years earlier, Levi brought out a line of permanent press (no-iron) slacks. Within six months, 5 out of every 100 pairs sold had been returned, and Levi had to admit it didn’t have the right fabric for permanent press. Fifteen years later, as the company was planning its major expansion, it hit on a couple of equally dramatic flops. First was the denim bathing suit—which, when wet, weighed the wearer down to the point of imminent drowning. Next was a line of disposable (throw-away) sheets and towels. These, Levi discovered, were not high on the consumer’s list of......

...Levis’ Jean
SWOT Analysis
Strengths.
Levis' are the original, authentic jean. They were a hit with baby boomers decades ago when they were in their teenager years. Another is that they stood for something beyond profit. The family took pride in providing quality products, personal service, and fair treatment. The family name and tradition was associated with respect for people—customers, employees, and the community.
Weaknesses.
The company began to rapidly lose market share to newer, trendier, more aggressive brands and designer labels. The Levi brand lost luster and relevance to the younger generation. Levi's jeans are perceived to be their “parent's jeans.” For that reason they will wear anything else but a pair of Levi's. This perception is an ongoing marketing problem and the company is struggling to find a way to reverse the brand's fortunes. Their tradition of promoting within may have started their dark side. Long-term managers became used to doing things a certain way, and kept new ideas and new blood at a distance. Since the company was so committed to its employees, it kept the younger recruits with new ideas from finding a place. They were so inwardly focused, that they missed the great changes occurring in the fashion world. Their main flaw was that they did not have a clear developmental strategic plan, did not pay attention and learn new technologies, and did not keep track of the competition, market and consumer tastes.
Opportunities.
In today’s society...

...Case Reading – The Levi’s Personal Pair Proposal
The case talks about Levi Strauss and Co, a privately held American clothing company known worldwide for its Levi’s brand of denim jeans. Levi’s was approached with a new concept called the Personal Pair. Custom Clothing Technology Corporation had offered Levi Strauss a joint venture proposal that would combine the Levi’s core products with emerging technologies of mass customization. CCTC’s plan was to make special customized jeans that would fit to meet each customer’s unique needs and taste. The problem is that Levi was not sure if they should accept the proposal or not.
I analyzed the case by looking at the pros and the cons of the personal pair concept. I though one of the biggest cons of the program was the wait time. A person would first have to come in to get their sizes taken and than would have to wait an additional 3 weeks to get their product. Another con was that Levi would not carry any finished products, which meant that if someone wanted to buy a pair of jeans at the store they would not be able to purchase them and instead would have to pay a higher price to wait 3 weeks for their jeans.
I would say that they should reject the proposal because the cons outweigh the pros. The new technology would increase the price of their product by adding another $15 to a pair of jeans, which would be a huge disadvantage for Levi. Levi was already struggling in the lower and upper ends of the apparel market and adding...

...Question 3- a Provide an example of how Levi Strauss employees become involved with the giving programs?
The employees participate in multiple of charities; however, the foundation main objectives are centralized on HIV/AIDS, building assets, workers equality and community engagement.
The employees participate in Levi’s Strauss 80 community involvement teams which get together with local charities that identify needs and plans towards the community needs. Also, employees get involved by having a sponsorship for the annual volunteer day. The company allows 5 hours per month paid time off to volunteer to different charities. The foundation additionally meets employee’s contributions to charitable organizations which they are able to donate to online or having deductions from their payroll.
The welfare of the employees within the company is a commodity the foundation upholds to make sure it is at its highest standard. The employees include the textile workers in the 15 different countries the products are made, and the employees who work in retail. The foundation supports programs that educate the workers about the rights they have and improves the health of the workers. Subsequently, the foundation is trying to decrease race gender sexual or social economic factors to be mentioned in the work place.
Supporting the less fortunate of the working class by creating assets, the foundation believes they will in turn think the opportunities they can achieve will be......

...Levi Strauss & Co.
An Analysis
EEP 142 Group Project Young Lee James Moon Michael Lin
Problem
•The Levi Strauss company is experiencing losses and is continuing to under-perform in the denim jean market. •The firm faces the general problem of a dominant firm losing market share when more firms enter the market.
Problem Background Successes Competition Solutions Responsibility Conclusion Q&A
Background
- History
•The company was founded by Levi Strauss in 1853 primarily selling wholesale dry goods. The company was founded in San Francisco, California. •A tailor named Jacob Davis thought of an idea to use copper rivets to reinforce the points of strain on pants. •Davis and Strauss purchased the patent of the idea of using copper rivets in clothing on May 20, 1873.
Problem Background Successes Competition Solutions Responsibility Conclusion Q&A
Background
- Company Growth
•The innovation of the rivets in the jeans differentiated Levi’s jeans from others because of its increased durability. •Over the years, Levi’s jeans have become more popular, initially due to its durability. Jean products expanded, targeting different consumers. •Levi Strauss & Co. eventually captures most of the denim jean market, becomes the largest manufacturer of jeans, and profits reach $1 billion by 1974.
Problem Background Successes Competition Solutions Responsibility Conclusion Q&A
Background
- Time Line
•1853: Levi Strauss begins selling dry goods in San Francisco....

...order transmission to CCTC then to the factory.
* Retail Outlets
Currently PPS is operating in four retail outlets it’s attractive for customers because they can come and order the jeans according to their preferences i.e. customization.
* Sales & Promotion
The company would promote its system by letting the customers know that we operating on customization. The more the company will advertise more will be the number of its customers See exhibit 1
Question no3.
Pricing the Personal Pair
We will increase the price of Personal Pair due to the following reasons:
* Customization
Customization means to build according to customer’s preferences. Levis traditionally was manufacturing standard Levi’s Women Jeans that resulted in women dissatisfaction in a large number. In response to this Levis introduced Personal Pair system i.e. customization and in this company always charge high prices.
* Training of sales Clerk
In order to satisfy the customer we will have to train the sales clerks so that they may take the size of the customer properly. Training them will incur cost that’s why we will keep the price higher.
* Brand Image
Levi’s has strong brand image which can be destroyed if low price strategy is adopted.
Question no.4
Advice to management regarding Personal Pair Experiment
Further expansion:
Fashion is all about adopting new trend and being innovative. Customization can lead to maximum satisfaction and this puts ball in......

...communications plan is designed for new advertising campaign for Levis Strauss Company. Levis Strauss Company is manufacturer of jeans and many other clothing products. Brands are very famous due to style and quality and people feel prestige while using the products of Levis.
The plan includes introduction history of the company and it also includes promotion analysis, corporate strategies, Objectives, relevant advertisings through different mediums like TV, Radio, Newspapers, billboards, budgeting for the entire campaign etc. After then evaluation and finally media plan has described.
The overall goals for this plan are:
➢ To inform, persuade and remind the potential customers about its products
➢ Increase awareness and build primary demand
➢ To build strong brand equity.
➢ Build Company’s image as innovator.
➢ To create bonds between public and Levi Strauss by helping the people.
➢ To create the importance of its products
INTRODUCTION:
Levi Strauss & Co. (LS&CO.) is one of the world's largest brand-name apparel marketers with sales in more than 110 countries. There is no other company with a comparable global presence in the jeans and casual pants markets. Today, the Levi's® trademark is one of the most recognized in the world and is registered in more than 160 countries. The company is privately held by descendants of the family of Levi Strauss. Shares of company stock are not......

...Levi Strauss is an iconic American brand name. Since it’s inception in 1883 by Bavarian immigrant, Levi Strauss, the company has remained loyal to its core values – exceptional quality, style and function1. In order to maintain their competitive advantage and sustain their image as industry leaders Levi Strauss has proposed a merger with Custom Clothing Technology Corporations (CCTC). Employee Heidi Green at CCTC must consider joining Levi Strauss to exploit an opportunity in the market for personalized denim.
Levi Strauss prides themselves on their “social conscience” offering competitive salaries and benefits to employees. Additionally, they manufacture all products in the United Sates and market the “Made in the Unites States” label as a value-added incentive for consumers. The fact that Levi’s garments are manufactured locally has also supported their brand image of being “authentic”, “original” and “genuine”. The Levi’s brand made their debut in the mainstream market in the 1950’s when Hollywood celebrities proudly adopted Levi’s denim. The attributes of celebrities like Bob Dylan and Marilyn Munroe helped curated the Levi’s brand image of being original, unique and proudly American.
Levi Strauss flourished during this period and set the new industry norm. Competitors were quick to catch-up by mimicking the standard attained by Levi Strauss. In order to compete most new entrants set-up manufacturing plants overseas to exploit cheap labor thus minimizing......

...Consumer Education Campaign
Levi Strauss & Co. (LS&Co.) announced (17-03-2015) it has saved 1 billion liters of water since 2011 through its Water<Less™ process, which reduces the water used in garment finishing by up to 96 percent. This announcement coincides with the release of LS&Co.’s newProduct Lifecycle Assessment (LCA), an update on the company’s groundbreaking 2007 study that examined the environmental impact of LS&Co. products. The new study analyzed the complete product lifecycle, probing deeper into the environmental impacts of cotton in key growing regions, apparel production and distribution in a range of locations, and consumer washing and drying habits in key markets.
The study shows that of the nearly 3,800 liters of water used throughout the lifetime of a pair of jeans, cotton cultivation (68%) and consumer use (23%) continue to have the most significant impact on water consumption. Consumer care is also responsible for the most significant energy use and climate impact, representing 37 percent of the 33.4 kilograms of carbon dioxide emitted during the lifecycle of a jean. The new LCA expands on previous research to better understand the impact of cotton cultivation and includes data from the world’s primary cotton producing countries, including the United States, China, Brazil, India, Pakistan and Australia. It also analyzes consumer care data from new markets, including China, France and the United Kingdom, to understand the costs and......

...Levi Strauss & Co. a​nd China
From: Case Studies in Business Ethics 5th ​ed. Al Gini (pp. 294-298)
The market that is the people's Republic of China consists of more than 1 billion consumers and offers low production costs, but its human rights violations have long been condemned by international bodies. In 1993 Levi Strauss & Co. (LS & Co.) faced one of its more difficult decisions in a long corporate history. Would it continue to conduct business in this enormously promising market or honor its relatively high ethical standards and withdraw?
Levi Strauss: History and Ethical Stance
Founded in the United States in 1873, LS&Co. enjoyed consistent domestic growth for generations and began overseas operations during the 1940s. The company became the world's largest clothing manufacturer in 1977 and achieved $2 billion in sales by the end of the decade. Having offered stock to the public during the 1970s to raise needed capital, management decided fourteen years later to reprivatize in a $2 billion leveraged buyout, the largest such transaction to date. Management's reasons included its heightened ability to "focus attention on long-tem interests (and)… to ensure that the company continues to respect and implement its important values and traditions." By 1993, LS&Co. Produced merchandise in 24 countries and sold in 60.
LS&Co. has been a leader among U.S.-based corporations in recognizing the importance of business ethics and community relationships.......

...Introduction:
Levi Strauss & Co. (LS&CO.) is one of the world's largest brand-name apparel marketers with sales in more than 110 countries. There is no other company with a comparable global presence in the jeans and casual pants markets. Today, the Levi's® trademark is one of the most recognized in the world and is registered in more than 160 countries. The company is privately held by descendants of the family of Levi Strauss. Shares of company stock are not publicly traded.
The company employs a staff of approximately 15,000 people worldwide, including approximately 1,000 people at its San Francisco, California headquarters. Levi Strauss & Co currently makes jeans in approximately 108 sizes and 20 finish fabrics. With 2014 net sales of $4.75 billion, the company is committed to building upon strong heritage and brand equity as they position the company for future growth. There are more than 60000 retail store worldwide which includes 2800 franchised store and also 530 company-operated stores around the world. The company is privately owned by the family of Levi Strauss.
Brands:
The products of Levi Strauss & Co are sold under four brands:
Levi's®:
Since their invention in 1873, Levi's® jeans have become one of the most successful and widely recognized brands in the history of the apparel industry. Levi's range included
1. Tops, sweaters, jackets, and outerwear
2. Kids wear
3. Footwear and hosiery
4. Loungewear and......

...Founder(s) | Levi Strauss |
Headquarters | San Francisco, California, U.S. |
Area served | Worldwide |
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Industry | Clothing |
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Levi Strauss & Company was established in the 1850s in San Francisco, California, to sell the finest domestic and foreign dry goods, clothing, and household furnishings. Levis and his brother as well as two brothers in law ran the business and now a day’s Levis has been become a brand in the market. They had a ready market for their wares in the gold miners, cowboys, and lumberjacks, who had moved west to make their fortunes. Levi’s is the best company in the world especially in the fields of jeans but now a days it has entered into the fields of women’s as well as kids and specially now a day’s levis has been entered into bag products.
Levi Strauss, born in Bavaria in 1829, immigrated to the United States with his family in 1847, at the age of 18. In New York, he was met by his two half-brothers, who had already established a dry-goods business. A year later, he was dispatched to Kentucky to live with relatives and walk the countryside peddling his brothers' goods.
While levis was still travelling in south specially and was finding a little bid problem in the market, his older sister's husband, David Stern, established a dry-goods store in San Francisco, California, in the wake of the 1849 California gold rush, and the company that would come to bear Levi Strauss's......

...Case Name: Levi Strauss – Case 1
Short Cycle Process:
• Who: Levi Strauss Management
• When: 1995
• Where: United States/Globally
Case Analysis:
Issues #1 – Customer Satisfaction & the “Perfect Pair” Kiosks
The “Perfect Pair” kiosks pilot project has been operating for a year now, and this has provided enough data to analyze whether Levi Strauss should continue with this project as is, expand or terminate this venture. The “Perfect Pair” kiosks will be reviewed in comparison to the current wholesale and retail operations to determine whether it provides the best return on invested capital.
Applicable Concepts
Product Pricing and ROIC
Value Chain Analysis
Product Mix
Qualitative Analysis
The alternative value chain for these kiosks is significantly changed in comparison to the wholesale and retail operations, and this is due to the processes involved in producing the kiosks end product. The new process reduces the time lag between start to finish of the value chain in comparison to traditional product lines. Expanding the kiosks to other retail locations will provide Levi’s with the opportunity to better respond to current industry shifts, while also providing greater satisfaction to its customers.
Since Levi’s is not going to initiate the manufacturing process until after the sale has occurred, the need for intensive budgeting and forecasting is reduced for the “Perfect Pair” kiosks. The new alternative value chain also results in a......